Since local governments in Taiwan were given the power of self governance in 1950, the administrative divisions haven¡¦t been readjusted. After 60-year development, the population distribution and urban modes have totally changed. Without readjustment of the administrative divisions, human resource could not be reasonably deployed, resources wasted, regional development gaps widened and the entire country development was severely influenced. Under the impact of globalization and in response to new development in all aspects, such as politics, economics, society and territory, the governmental system and function have to be re-defined and administrative divisions and organization structure have to be readjusted to build an idealized and high-effective government. In recent years, local self-governing groups around the world also moved on to merging to cope with local fiscal predicament and promote the empowerment of local governing groups to enhance their administrative ability. The academic also comprehend the urgent importance of the merging of urban and rural townships and thus propose different resolution projects and strategies and directions of merging and adjustment. The author managed to sort different literature into supporting theories of merging and foreign cases about the merging of local self-governing groups. Based on the above theories and cases and through data envelopment analysis (DEA), the author simulated different merging programs of urban and rural townships, compared the efficiency before merging and that after merging, and proposed concrete suggestion towards the inefficient self-governing groups. The result showed that the program of merging urban and rural townships could increase the efficiency in every aspect. The conclusion can serve as reference to the future implement of the program of merging urban and rural townships.